what is c-suite coaching?...coaching work will ideally be executed in both individual and team...

WHAT IS C-SUITE COACHING?BY JANE PORTER MCC, HEAD OF COACHING AND EDUCATION, GROWTHOPS

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This is version 1.1.19

CONTENTS EXECUTIVE SUMMARY 4

INTRODUCTION 6

THE RESPONSIBILITY OF THE BOARD AND KEY STAKEHOLDERS 8

HOW DOES A C-SUITE COACH ADD VALUE? 11

SO, YOU DECIDE TO RECRUIT A C-SUITE COACH – HOW DO YOU KNOW WHAT YOU ARE GETTING? 15

THE C-SUITE COACHING FOCUS 18

CONCLUSION 20

REFERENCES 22

OUR COACHING APPROACH 24

EXECUTIVE SUMMARY

5© GrowthOps IECL Pty Ltd 2019

Organisations, and in particular their Boards, have a duty of care to develop and support their CEO and C-Suite Leaders, whilst maintaining ROI for shareholders1. However, nearly two-thirds of global CEOs do not receive coaching or leadership advice from outside consultants or coaches2.

Alongside this somewhat scary fact, research has shown that it is increasingly likely that Boards will experience a C-Suite Leader departure that will be triggered prematurely. One wonders whether there is a direct correlation between premature departure of C-Suite Leaders and the lack of coaching support? If more high-quality C-Suite coaches were engaged at this level, might thiscontribute to stronger C-Suite leadership and less prematuredepartures?

Senior, well experienced coaches at this level can help organisations understand how to support and develop their C-Suite Leaders. Part of that coach’s approach is to help the C-Suite Leader and understand their role as a systems thinker as well as a functional thinker.

At C-Suite level, we believe organisational coaching is about working with much more than a person’s potential. The effective C-Suite coach will understand that they are there in service ofthe Board and key stakeholders to support the C-Suite Leaderin effective performance, sustainability in role and wellness. Thecoaching work will ideally be executed in both individual and teamsettings for maximum impact.

This paper explores how organisations can make sure they get high value when hiring coaches for their C-Suite.

1 ASX Corporate Governance Principles and Recommendation 2014 2 Stanford Graduate School of Business 2013 Executive Coaching Survey

INTRODUCTION


Our C-Suite Leaders are the equivalent of our organisational Olympic athletes. Being at the top of their game in achievement and ability has enabled them to rise to the top of their organisational systems. Everything they do or say has an impact on every aspect of the system. The ripple effect of their decisions and behaviours is enormous. Yet how many Chairs or Board members truly believe they have Olympic athletes in their C-Suite, and treat them as such? Perhaps the more interesting question is who’s responsibility is it to ensure C-Suite Leaders get what they need to enhance performance and wellbeing in the organisation’s system, in which they operate. This starts with themselves.

Take a look at the two interesting facts on this page and let’s explore the possibility that there is a relationship between these two facts. What if more C-Suite and senior leaders that wanted a coach actually had one? And if they did might this contribute to both increased performance and wellbeing whilst minimising premature departures? Why are so many senior people left to go it alone when there are very real risks of serious impact on the individual, the organisation and its shareholders?

3 Langton, S., Before the horse has bolted: Successfully leading a premature departure of the CEO (Leadership Succession Advisory Pty Ltd., 2016)

FACT ONE

FACT TWO

The Stanford Graduate School of Business 2013 Executive Coaching Survey states:“Nearly two-thirds of CEOs do not receive coaching or leadership advice from outside consultants or coaches, and almost half of senior executives are not receiving any either.” An interesting statistic which becomes somewhat puzzling when we learn later in the report that over 80% are receptive to receiving coaching.

Most Board Directors will experience a CEO transition in their tenure and, against the trend of recent years, it is increasingly likely, indeed increasingly common, that this departure will be triggered prematurely. Handling such an event is almost universally cited by Chairmen as the most important and stressful decision that they will oversee in their tenure3.

THE RESPONSIBILITY OF THE BOARD AND KEY STAKEHOLDERS?


If we look at Fact Two (see page 7), it’s interesting to consider whether boards are following through with their duty of care in supporting and developing their CEO and C-Suite executives?

In today’s volatile, uncertain, complex and ambiguous business environment, C-Suite executives face challenges which are multi- faceted, and have many layers of complexity that are systemic in nature.

They often also hold functional head roles such as CFO or CIO, as well as being responsible for whole of business issues. Risk mitigation and governance are also part of their role, and elements of these requirements can be in direct conflict with what is required to move the organisation forward. We see direct evidence of this with the recent focus on regulation in the banking sector. We can only speculate as to whether there is a relationship between increased complexity and an increase in premature C-Suite departures. What we do know is wellbeing is often cited as a key reason for leaving the organisation.

Langton provides some clarity as to the drivers of premature CEO departures. He shares:

“Lifestyle and wellness are often cited as reasons for premature departure. A couple of examples are the early departure of National Australia Bank’s CEO Cameron Clyne: ‘I am leaving to spend some much-needed time with my young family.’ And both Shell’s Peter Vosser and Sears’ Louis J. D’Ambrosio cited family and health reasons for stepping down in 2013.”4

It was a similar circumstance for former New Zealand Prime Minister, John Key:

“Key cited family reasons for leaving, saying the job had required great sacrifices ‘from those who are dearest to me’. His wife Bronagh had endured ‘many lonely nights’ and his children Stephie and Max had been put under ‘extraordinary levels of intrusion…Bronagh has made a significant sacrifice during my time in politics, and now is the right time for me to take a step back in my career and spend more time at home.’”5

So, what’s the impact? Langton notes the following:

• Premature CEO departure can mean ‘shareprices tumble due to investor uncertainty’.

• Unexpected severance packages often reachinto the millions.

• While the focus of the Board is on CEOreplacement, who is focused on running thecompany?

LIFESTYLE AND WELLNESS ARE OFTEN CITED AS

REASONS FOR PREMATURE DEPARTURE

10 © GrowthOps IECL Pty Ltd 2019

The Stanford Graduate School of Business 2013 Executive Coaching Survey has also found that, ‘how to handle conflict’ ranked as the highest area of concern for CEOs. 43% of those surveyed ranked this as their highest area of concern. ‘Stakeholder overload’ was also mentioned as a real burden. In our experience, in most C-Suite cases no suitably safe support is in place. The organisation’s biggest asset is often left to go it alone.

Whatever the reasons behind the concerning numbers, organisations, in particular their Boards, have a duty of care to develop and support their CEO and C-Suite Leaders, whilst maintaining ROI for shareholders.6

What are Boards doing to ensure the stability and long-term health of their C-Suite? How aware are they of the personal drivers of their C-Suite? How do Boards become aware whether their CEO’s drivers are being met by their role in the organisation?

Let’s explore how C-Suite coaching is relevant to this and whether coaching partnerships could lead to more effective outcomes for current and future senior leaders.

4 Langton, S., Before the horse has bolted: Successfully leading a premature departure of the CEO (Leadership Succession Advisory Pty Ltd., 2016)

5 Davison, I., ‘John Key resigns as Prime Minister of New Zealand, cites family reasons for leaving’, NZ Herald (online), 5 December 2016 <http://www.nzherald.co.nz/nz/news/ article.cfm?c_id=1&objectid=11760656>

6 ASX Corporate Governance Principles and Recommendation 2014

HOW DOES A C-SUITE COACH ADD VALUE?


C-Suite coaches are skilled in helpingorganisations understand how to support anddevelop their executive Olympic athletes, andno Olympian or their team ever achieves goldwithout the right kind of systemic support. Partof the coach’s approach is to help the C-SuiteLeader understand their role as a systems thinkerrather than a functional thinker, and coachingapproaches need to support the expansion of theformer.

The performance of the C-Suite Leader is directly related to their own capability as well as the conditions in the system around them. We can all relate to an example of learning a new skill or increasing awareness of a behaviour we want to change, and no matter how strong our conviction, we can revert back due to the pull of established systemic ways of being or operating in the organisation. As the role of the C-Suite Leader is to enable optimum functioning of the organisational system, the partnering coach will need to understand that this can only be achieved through a systemic coaching approach.

This means coaching the system through the individual and their team. The coach’s focus needs to be on systemic outcomes, and individual outcomes must be agreed in the context of the whole. The coaching focus then becomes the executive’s relationship to the system and its relationship to them. It’s easy for the normal operating rhythm of a business to drive the executive into short-termism, the coach’s role is to support the C-Suite Leader to mitigate this. It is true that for many C-Suite roles there is both a functional and a strategic focus, and in this case the coach needs to be comfortable to dance between the two.

The coaching encounter is a complex living system. The view of the world we share is best represented by an adaptation of Ken Wilber’s Integral Theory:7

THE CASE OF TOM

Tom is the CEO of a large Not-for Profit with national operations in many remote areas of regional Australia. He is in his mid-50s, and alongside his successful career he has a passion for supporting remote community initiatives. Tom came to coaching because he was experiencing extreme frustration with the “aggressive and arrogant” behaviours of some key stakeholders. Tom was aware he was being triggered into behaving in ways that, in his eyes, did not befit a CEO. As a result, he was disengaging from community projects, and together with his family already planning how he could “get out of thisplace”. He was finding himself working many extra hours to try and “do things himself” instead

of “dealing with these idiots”. During coaching, we discovered the stakeholder behaviours were challenging a deeply held belief of Tom’s that “senior leaders should not behave in this way”.

Through coaching, Tom was able to understand what was happening and how he was behaving at a values level, and then start to work out how he might take a more strategic, values-based approach when responding to such situations. After a number of months of coaching, Tom felt he had regained control of his behaviours, his hours and ultimately his health. He and his family decided to stay.


This, we use as both a map of the organisational territory and a coaching tool to assist the journey. The map however is not the territory. The territory is the coaching relationship.8

7 Wilber, K., The Spectrum of Consciousness (Quest Books, 1977) 8 Armstrong, H., Matthews, J., & McFarlane, C., A crucible for change (Institute of Executive Coaching and Leadership, 2012) 20.

BASED ON KEN WILBER’S INTEGRAL THEORY


To return to our Olympic level athlete metaphor, part of their success regime is a program of rest, recovery and regeneration.9 Coaching is one way of contributing to this. Studies have shown that moving someone from a ‘low’ to ‘moderate’ wellbeing score delivers on average a 13% productivity dividend, at the same time dramatically reducing the risk of early exit from the workforce.10

Therefore, wellbeing at the C-Suite level could contribute to longevity of service which in turn could enable work to be done at a systemic level, and facilitate effective succession planning. (See Benefits of Coaching below)

Furthermore, ASX Corporate Governance Principles and Recommendation 2014 tell us that the Board is responsible for managing risk throughout an organisation, so it would follow that providing support for the wellbeing of the C-Suite Leader is part of effective risk management practices.

Our 2016 Coaching Effectiveness Survey, which was based on 10 years’ worth of coaching data, also supports that coaching provides support in the other areas of wellbeing and performance:

BENEFITS OF COACHING AREAS OF ACHIEVEMENT FROM COACHING

INCREASED JOB ENGAGEMENT

INCREASED CONFIDENCE/AUTHENTICITY

INCREASED WELLBEING

INCREASED SOCIAL CAPACITY

SUCCESSFUL GOAL ATTAINMENT

10% 20% 30% 40% 50%

AUTHENTICITY

SELF-AWARENESS

INFLUENCING OTHERS

FOSTERING OTHERS

PERFORMANCE EFFECTIVENESS

AREAS OF ACHIEVEMENT FROM COACHING SO, YOU DECIDE TO RECRUIT A C-SUITE COACH – HOW DO YOU KNOWWHAT YOU ARE GETTING?


The International Coach Federation defines coaching as partnering with clients in a thought-provoking and creative process that inspires them to maximise their personal and professional potential.11

As previously stated, at C-Suite, IECL by GrowthOps believes it is about working with much more than a person’s potential. The effective C-Suite coach will understand that they are there in service of the Board to support the CEO and executive team in effective performance and wellness. A simple example of how this distinction would look in a coaching conversation is demonstrated by the difference between an individual style of coach questioning, “How do you become the best CEO you can be?” versus a systemic questioning approach, “What kind of CEO does the organisation need you to be?” The latter is asking a much broader question in service of the system and the organisation emphasising that the C-Suite role is in service of something much bigger than them as an individual.

It could be argued that the current approach to recruiting coaches at this level is contributing to Margaret Heffernan’s concept of ‘Willful Blindness’.12 Coaches are recruited often without the knowledge of the Board, with no organisational or systemic agenda set. The coach

is often recommended by the grapevine, which can result in the individual getting the coach they like rather than the coach the organisation needs. To add to this landscape, coaching is an unregulated industry, and the onus is completely on the purchaser of coaching to do their own due diligence.

In our view there are a number of areas to explore in a coach or coaching organisation to ensure they have C-Suite coaching capability:

• Find out whether they have robustqualifications and credentials in systemiccoaching approaches. Are their coachingqualifications ICF accredited? Are they ableto share the theoretical and philosophicalunderpinnings of their coaching approachesand how these approaches align with theC-Suite world?

• Do they display “a strong disciplinarybasis while maintaining flexibility andresponsiveness” and the ability to operatein “an increasingly complex world wherepersonal spirituality, corporate ethics, socialresponsibility, cultural diversity and communalenvironmental awareness are increasinglyimpinging on corporate life.”?13

• How strong is the coach/coach organisationin the contracting conversations? Are they


asking systemic questions, involving key stakeholders, helping you set both individual and organisational outcomes with key measures of success and are they able to show you the approaches they will be taking to help you achieve?

• Are they comfortable with complexity andhow can they demonstrate this to you?Hawkins says we are living in a world of“increasing systemic complexity” and “what iscoming up in the world of tomorrow and howwill you deal with that?”14 The seasoned CEOneeds to reflect on who they are being in therole and in the system and simultaneouslylearn how to make the complex simple.At this level the coach therefore needs todemonstrate their ability to be a systemicthinking partner. Subsequently there is oftenmore longevity in the coaching relationshipat this level (as compared to up to 12 months)than mid-level coaching engagements, whilstcoaching longer horizon objectives the coachis also able to be responsive to where thingsare now.

• Does the coach need to have been a CEOthemselves? This is an interesting ongoingdiscussion. On one side of the argumentis the idea that if you have been a CEO itgives you the ability to fully understand theC-Suite world. We would argue that if youhave been a CEO it gives you the ability toask some interesting questions and givesome interesting advice, and we would alsoask: is that really enough to coach systemiccomplexity effectively? If the C-Suiteexecutive truly needs someone to give themadvice and share their worldly wisdom, thenfind them a mentor! If a mentor is needed thecoach and the mentor can work effectivelyconcurrently as long as role clarity is in place.On the other side of the argument is theview that someone who has been in C-Suitewill have a clouded view and will be unableto ask the powerful questions that will bringreal clarity and expanded thinking. There is areal risk that they will become involved in thesystem themselves as it’s an environment withwhich they are familiar.

• Does the coach have coaching presence? “Acoach has to bring her own presence in orderto be a contributing partner. Otherwise, theleader’s interactional force field of dilemmascan also pull in the coach. When the coachsuccumbs to the same dilemmas as theleader, she does not help but contributes tothe problem instead.”15 How can the coachdemonstrate and talk to their own evolutionthrough physical, emotional, mental andspiritual resilience? If they can demonstratetheir own evolution resilience they are muchmore able to work with others to develop andmaintain theirs.

11 International Coach Federation, About ICF, <https://coachfederation.org/about/>

12 Heffernan, M., Wilful blindness (Simon & Schuster UK Ltd., 2012)

13 Armstrong, H., Matthews, J., & McFarlane, C., A crucible for change (Institute of

Executive Coaching and Leadership, 2012)

14 Hawkins, P., Leadership Team Coaching (Kogan Page Ltd., 2011)

15 O’Neil, M. B., Executive coaching with backbone and heart (John Wiley & Sons,

Inc., 2007)

THE C-SUITE COACHING FOCUS


So, you’ve navigated the unregulated world of C-Suite coaching and found your coach or coaching organisation. How do you now make sure the coaching focus is going to be of most value? If you have recruited the right coach/organisation then they should guide you through this process in line with the criteria in the previous section.

Highlighted below are some of the key areas which in our experience are areas of focus:

• Being a C-Suite executive is a vulnerableposition. From a systemic perspective, if thesystem is not working as it should it mayevict you. The dichotomy here is that at thislevel your job is to make the system work. Ifyou make change in one area all others areimpacted. At this level you are the custodian ofthe system so it’s not about ‘I’ any more. It canalso be a very lonely place; the coach is a safethinking partner to walk with you and help youmake sense of the complexity.

• Whilst there is a systemic element to your roleyou may also have functional components. Thisis particularly relevant in CFO, COO and CIOroles for example. In this case there will need tobe a focus on managing the tension betweenthe two. Also relevant here is the sense of selfyou will have developed through your historicfunctional identity. How will you now managethe shift in your sense of self and how do younow define yourself at this level?

• Themes informing the content may include;managing levels of trust between CEO andBoard, developing and executing strategy inan environment of constant change, exploringstrategic possibility, a space to think withoutconflict of interest, managing self in complexity,managing the dynamics of relationships,isolationism, getting better performanceand engagement from others, the quality ofthe conversations you are able to have andopen, honest, ability to disagree effectively.Additionally, you may look at systemic andindividual wellbeing, powerplay, presence,stakeholder engagement, agility, developingcapacity in self, coaching the team. And wecould go on and on.

As the coaching progresses it is important for both parties to be checking in on effectiveness. Again, you will notice the competent C-Suite coach will build this into their process you should see evidence of the following as the relationship develops:

• The coach is able to ensure they don’tget sucked into the system and lose theperspective taking ability that they are helpingyou develop. If the coach is too niched in anarea that’s related to your organisation oroverly focused on their own C-Suite experiencethen this should be a red flag.

• From the coach you need to see an assertivestyle which shows they are able to managetheir own anxieties and insecurities whileworking with you. They need their own systemsin place to keep their self-esteem intact asthey help the C-Suite executive manage theseaspects of themselves. Check whether yourcoach receives supervision and how often. If inany doubt ask for the name of the supervisorto verify the information given. The ‘whole’coach will be able to bungee into ‘directivechallenger’ and dance lightly into ‘humblepartner’ with you just at the right moment.They will know how they need to be to serveyou and the system in which you serve.

• There is no room for self-doubt in a coachat this level. They need to demonstrate aconfidence to sit with the silence and allowthe system and systemic issues to showthemselves. They need be able to recogniseand surface these in language so that theycan be worked with. This takes courage. It’snot about offering data; the skill is a depth oflistening to surface what’s lurking below andthen guide a process of effective exploration todifferent outcomes. Within this they will helpyou work out what you are thinking, how youare responding, how clear you are about yourapproach and how well this is working for youand the system you represent.

CONCLUSION


The evidence is tenuous as to whether C-Suite coaching can prevent premature departure of a CEO or C-Suite Executive. Formal research in to this area would be useful.

What is very clear, however, is the following:

• Many C-Suite Executives want the support of a coach and don’tget it.

• Effective coaching enhances performance and wellbeing.

• An effective coach at this level needs to work systemically.

• The board has a responsibility to support the wellbeing of theirCEO.

• A strong C-Suite coaching partnership will have a positive impacton the individual and the system, namely the organisation, andsubsequently the shareholders.

REFERENCES


Armstrong, H., Follow the leader: Leadership development for the future (Institute of Executive Coaching and Leadership, 2012)

Armstrong, H., Matthews, J., & McFarlane, C., A crucible for change (Institute of Executive Coaching and Leadership, 2012)

Cable, M., Coaching supervision: no longer a ‘nice to have’ (Institute of Executive Coaching and Leadership, 2016)

Calder (2003)

Cardon, A., Masterful systemic coaching (Metasysteme Coaching, 2014)

Cardon, A., Systemic team and organisational coaching (Metasysteme Coaching, 2014)

Cox, E., Bachkirova, T., & Clutterbuck, D., The Complete handbook of coaching (SAGE Publications Ltd., 2014)

Davison, I., ‘John Key resigns as Prime Minister of New Zealand, cites family reasons for leaving’, NZ Herald (online), 5 December 2016 <http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11760656>

Hawkins, P., Leadership Team Coaching (Kogan Page Ltd., 2011)

Heffernan, M., Wilful blindness (Simon & Schuster UK Ltd., 2012)

International Coach Federation, About ICF, <https://coachfederation.org/about/>

Katzenbach, J. R., ‘The myth of the top management team’, Harvard Business Review (online), November-December 1997 Issue

<https://hbr.org/1997/11/the-myth-of-the-top-management-team>

Langton, S., Before the horse has bolted: Successfully leading a premature departure of the CEO (Leadership Succession Advisory Pty Ltd., 2016)

Larcker, D.F., Miles, S., 2013 Executive coaching survey (Stanford GSB Centre for Leadership Development and Research, 2013)

O’Neil, M. B., Executive coaching with backbone and heart (John Wiley & Sons, Inc., 2007)

Smith, R. B., & Cambell, M., ‘C-Suite challenges and the economic meltdown: What’s next for senior leaders?’, HR People & Strategy (online), 2010 <https://myccl.ccl.org/leadership/pdf/research/CSuiteChallenges.pdf>

WanVeer, L., Rothman, S., The 2008 Executive Coaching Fee Survey (The Conference Board, 2008)

Wilbur, K., The Spectrum of Consciousness (Quest Books, 1977)

Unlocking workplace productivity (EY Wellbeing, 2015)

OUR COACHING APPROACH


At GrowthOps, our proposition is not to advise but to enhance performance and wellbeing, and keep the C-Suite brain tuned. We offer a systemic thinking partnership approach to support you and the system you serve to stay whole and resourceful.

GrowthOps coaches understand the complexities facing C-Suite executives. Clients are challenged to gain a deep appreciation of their leadership style and are supported to make the behavioural changes needed.

Our strengths-based approach to executive coaching draws on multiple disciplines and is informed by the latest research in neuroscience and cognitive psychology. Our aim is to enhance the quality of the C-Suite’s insights and sense of empowerment to improve their performance and organisational effectiveness.

Find out more at www.iecl.com

CONTACT US

+612 8270 [email protected] www.iecl.com

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